yes. >> all right, allen, thank you. >> thanks, bill. zillion. >> we go out with a pretty good gain today, relatively speaking. and gold very strong and others. stay tuned. a lot to come in the second hour of the "closing bell." [ bell ringing ] coming up. and it's 4:00 p.m. on wall street. you're watching the "closing bell." i'm kelly evans in for maria bartiromo. she will be here, though, with part two of her exclusive interview with mike duke in just a moment. bill griffeth will join me momentarily, as well. the trading week coming to a close. it maybe the dead of august, but this was not a slow week by any standard. here's how we're finishing the day on wall street. the dow adding about 44 points or a third of one percent. similar gains for nasdaq, at 1,663. the nasdaq, bill, up half a percent. if you want to know why it's outperforming today, despite some of the stumbles this week, it has a lot to do with the performance of microsoft and facebook. >> yeah, facebook hits $40.

who'd thunk that six months ago, right? so a down week, but not a dull week, that's for sure. josh lipton has been on top of it all there on the new york stock exchange floor today. what are you watching there, josh? >> reporter: hey, bill, yeah, we do finish higher today. the dow tacks on 46. the nasdaq is up 19. the s&p up 6. 1,663. the dow intraday, i know you have been talking about this, you saw the drop after the disappointing new home sales data, but then we moved higher. it was microsoft. it was the rate-sensitive sectors, also, right? it was reits, utilities, s&p, telecom. and, also, big oil. exxon, chevron, you know, that's been weighing on the blue chip, but they were working today. what was not working today, some of the homebuilders. you look at the itb, the home construction etf, you know, bottomed in 2011. we hit the peak in may. but you're down about 19%, 20% since then. some of the homebuilders, they really lagged this week. ryl, lennar, kbh, toll, all

finishing the week lower. also the teen retailers, some of women really got walloped. rao, anf, rao guiding for the q3 loss. remember, the street was thinking you'd see a profit. finally, how do we end the week? the major averages, nasdaq finishes higher. the s&p 500 moves higher. the dow, though, does finish slightly in the red. guys, back to you. >> all right, josh, stay right there while we bring in the market pros to flesh out the discussion. joining us is ralph from altera, ryan, rick, and, guys, thank you for joining us. al, i want to start with you to get the fundamentals going. are you buying into this market? >> the short answer is, yes. in the ridgeworth allocation strategy, i'm looking for favorable entry points into attractively valued assets. going back to some of the comments made earlier, i like

what i'm seeing overseas, particularly in europe and our international people like germany in particular. so the latest trade that i've been doing is to add to the international space. >> my old friend and mentor, ralph, you've been the super bowl for a long time. the last time you were with us, though, you were starting to get nervous in the short term on this market. are you still? >> well, bill, we lost about 750 points in the first couple of weeks of august. we're oversold. the traders have a good time with this rally, investors sell into it. >> so you'd still sell? let me -- like i'm going to tell the master about this, but i ask the guys to build me a year-to-date chart of the dow, year-to-date. what i'm seeing is two-thirds of a head-and-shoulders top. for the dow jones industrials average. do you see that? >> well, that's a good point. i see something a little different. >> okay. >> bill, 60% of the components in the dow are either broken or

very vulnerable. and the last time i saw that, with the market being so-so, the last time i saw the dow hemorrhaging was in august of 1998. and that was about two weeks before the russian bond problem and long-term cap. >> yeah. >> i think there's a problem out there, bill. >> ryan, if that's the case, you also look at a lot of the charts. why do you think we're forming a bottom? >> that's right, kelly. when you talk about the dow, the dow is breaking down, ralph is right. but what encourages me is the small caps. the small caps are over percent this week. the russell 2000 had the breakout in july above the 1000 level, came back and tested it and is now kind of leading again. nasdaq is a percent off its 52-week high. look at cinnamon. we have the pullbacks, you know, 4%, 5%, and the fear is really spiking. we're seeing record vix call buying over the past 20 days. investors' intelligence poll, 35% looking for a correction, only happened 28 times since 1980. a month later, s&p up about 2%

and up 75% of the time. so to me, sentiment is getting skeptical on the minor pullback that could be positive in my view. >> are we saying here, allen, if you're a long-term investor, not to worry about potential dips in the short term, go ahead and buy anyway? >> i would say that we are still accumulating in the allocation strategies. the important thing, i guess, for me is that we have had a couple of consolidations in here, and each time that the market has found its footing, what appears to me to be happening is that we're seeing a gradual rotation back into the cyclicals, so we're overweight the technology space, overweight financials. so i think the market is setting itself up for a good finish to the year. i still have some more dry powder, but i definitely want to be involved with this market. i think all of the naysayers all year long, i think, have -- are still waiting for that great entry point as we hit new record highs. >> josh, picking up anything on the floor about what traders will be looking forward to next

week in order to figure out where we go from here? >> actually, kelly, you have a pretty relatively busy week in terms of economic fronts. you have durable goods. you have home prices. you have consumer confidence. you also have a lot more fed speak. william, lagarde, bullard, and i think traders are probably expecting kind of it to be relatively quiet here, depending on rates. remember, then again, that could change september, then we get the jobs report. of course, there's the fed taper or not tapering, and if they do, by how much. >> last question, ralph, you had said, okay, we get a 10% correction. it won't be so big, not such a big deal. is that what you're looking for? are you looking for more? >> no, bill. i'm looking for more. i mean, yeah, i just have to say one thing. never fight papa dow. those are the largest companies in the united states, and they have international exposure. you look at the emerging mark s markets, they look terrible. something is wrong.

no, bill, i think -- i gave you all a target of 13,333. i'm going to low they're to 12,000, bill. >> wow. all right. >> wow. >> all right. you're on record again. thanks, ralph. thank you, gentlemen, all for joining us. appreciate it very much. >> thank you. >> to stick with the cautious theme, walmart's ceo is worried about the consumer, and he is explaining it exclusively to our maria bartiromo. >> i think the concern about fuel prices, about jobs, employment, all of this puts a little bit of a cloud on the consumer in the united states right now. >> yeah, we'll get you that interview in full part two of her sitdown with the walmart ceo, next. >> a rare interview. he was called superman during what is sure to be a hall of fame nba career, and now shaquille o'neal is delivering on the soup part of his nickname, it says here, as in the soup you eat. you know? it's big business, and shaq is in it. he'll join us later on the "closing bell." [ marco ] i'm a student at devry university.

and this is my home team. this is my large lecture hall. this is my professor. and also my coach. this is my booster club. this is the guy who's graduating ready for a great career in technology. [ male announcer ] in 2012, 90% of devry university grads actively seeking employment had careers in their field in 6 months. join the 90%. learn how at devry.edu.

microsoft is a big mover today on steve ballmer's announcement he will leave the company in about a year. dominic is following that story and some of the other big stories for us. dom? >> reporter: bill, let's start with steve balm other, the ceo. he's retiring, not immediately, but sometime in the next 12 months. and ballmer has been ceo for over a decade at microsoft.

the board of directors there has initiated the search for a successor. shares did surge on the news to some of the highest levels since 2008. and then, hp, another tech giant. the company reported earnings earlier this week in a week that really underwhelmed investors here. the ceo, meg whitman, put a big damper on things when she said year over year sales growth in 2014 would be unlikely. the company faces a weaker environment for business spending, and the big downside mover earlier this week, internet radio company pandora, especially today, reported earnings and sales that topped analysts' estimates, but for full-year profit, the estimates fell short. a big reason for the profit pressure is coming from increased cost to acquire music content and expand the sales staff. we'll end on a high note. autodesk is on the way. the make irof design software issued a disappointing forecast for profits and sales but, and a big but, the company indicated it would shift to a subscription-based revenue model

for its products which did send shares higher. big movers here this week. >> big movers, yeah. thank you, dom. we'll see you later. "the new york times" expose into potential bribery by walmart to gain access into mention row mexico shook that company and its investors last year, we all know. now an investigation is under way. and it's costing that company tens of millions of dollars. >> that's right, bill. walmart's ceo mike duke addresses that and how the company, the largest employer in the u.s., by the way, is preparing for the new healthcare law. this all in part two of maria's exclusive interview. take a listen. >> let me turn my attention to -- our attention to mexico. walmart, of course, reported higher than expected expenses related to the foreign corrupt practices act in the international division. this, of course, the bribery charges in mexico. $73 million in the first quarter. more than expected. $82 million in the second quarter. on top of the $155 million to implement the compliance

program. a lot of expectations, more to come in the third quarter. do you have any visibility on this, mike? what should investors expect? should they expect these kinds of outflows for several quarters to come? >> well, first, the investigation itself and the timing, i really can't comment on, because it's an investigation under way. so it would be inappropriate to discuss that or the timing of that investigation. it would also be inappropriate to jump to any conclusions about the outcome of that. what i can say, and a portion of this investment is in the area of compliance, to do the right thing, in every market that we operate in. so we have invested in people and processes and systems to ensure that every market that we operate in, that we do it the right way in every aspect of our business, and i'm really pleased with the developments of improving compliance around the world. >> i think people are happy about that. but it was expensive, $155 million to implement this program. you've got to have a model that you're anticipating. i mean, could this be

a billion-dollar fine? are you going to be doing 80 to $100 million, putting aside for this expense for the next several quarters? >> of course, as i said, i really wouldn't be able to comment at all on the future of the investigation or any future discussions about that. so. >> let me ask you this. >> mm-hmm. >> are heads going to roll? is anybody going to get fired over this? >> i -- we will take the appropriate action. but it would be premature to discuss anything about the future. we do the right thing, and walmart management associates know that doing the right thing is just a part of working at walmart. >> so people just feel like this is also part of working and running a business in mexico, by the way. >> we do not have different standards anywhere in the world. we set the highest standard. we expect compliance with our united states law. but we also expect that standards of local law. but frankly, i like to say that

our standards are higher, that the way of doing business the right way comes where the law is the starting point. we have much higher expectations of all of our leaders. >> mike, let me switch over to healthcare, because this, of course, as you know, all of your colleagues in business keep naming this as one of the issues that are keeping them sitting on cash, not hiring workers, increasingly companies shifting full-time workers to become part-time workers because of the expense of obamacare. you initially backed obamacare, but then last year, in december, you said you, too, would no longer insure part-time workers. how much of a burden is the rising cost of healthcare? explain this to us. >> you know, i'll clarify, back a number of years ago, we actually said before there was the affordable care act, that the current system of healthcare was not sustainable, and we still believe that, that the path on healthcare -- healthcare in the united states needs revision and still does. but we've been working on this now for a number of years.

so the affordable care act really doesn't have the significant impact, because we already meet the test for affordability, for quality of what the act requires. so not a big change for us. >> have you been increasing the ranks of part time versus full time? >> that has not been a strategy related to healthcare. we're pleased that we give healthcare benefits. we've always been one that -- we've been improving our benefits in the healthcare area. we also had healthcare plan for our part-time associates that now meet the requirements of the affordable care act. >> mike, one of the issues that came up with some of the investors i was talking to, when i was preparing for this interview, is your succession. the company has identified two people that perhaps could be your successor. bill simon, who runs the u.s. -- who runs international, mcmillan. have you discussed the issue of succession with your board? >> i think every responsible public board at every board meeting should be discussing

succession. of course, walmart has a very mature board. our chairman, rob walton, and other members. so succession is an ongoing -- i think when i first joined the board of directors it was discussed then, and it's discussed at every board meeting continually, as should every public company board. >> will you announce your retirement this year? >> you can tell i love what i'm doing, so that's not the topic of today's discussion. i love being here with our store managers and being at a meeting like this and discussing our customers and our business. and i'm highly energized. >> well, she tried. >> well, she certainly did, bill. lots of stuff to unpack there from that whole interview. and i loved his point earlier about the $40 a week that the payroll tax is taking out of people's paycheck, the impact that's having. >> exactly. >> by the way, impact of technology having as well for allowing consumers to shop smarter. lots of good stuff. >> yeah. moving ahead, imf christine

lagarde making news on the global economy. coming up, she'll talk about it right here on the "closing bell." >> from lovely jackson hole. up next, though, sports legends trying to be businessmen, as well. we have nba great and kelly evans' idol shaquille o'neal. >> that's right. i loved him growing up. >> and phil mickelson and shaq both coming up. and also live outside the new york stock exchange, the cake boss. we'll find out what he's got cooking later on the program. don't go anywhere. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550

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well, bill, there are usually a couple of boards, investors watching. there's the big board and then the scoreboard. >> many athletes are not that much different. looking for investment opportunities, playing off the pleaing field, because they know those opportunity dislast a whole lot longer than their careers do. jackie deangelis has more on that story. >> i like the spirit juice. >> reporter: atlanta falcons star quarterback matt ryan has a big off-field investment. signing on to be an equity partner in smoothie company, liquid nutrition. >> very much the way i live my life is very much what this brand is about. >> reporter: ryan plans to bring the canadian company to his hometown of atlanta where he'll open several franchises. >> in the nfl, your second career is constantly talked about, no matter how long you play when you retire, you'll be a young man. >> reporter: ryan is just one of a growing roster of athletes joining the franchise business.

other big names include 22-time grand slam winner venus williams, who's the face of jamba juice franchises, to former nba player and franchisee, jamal mashburn, owner of 73 restaurants. >> a lot of athletes do have that access to capital. and are looking for second-career investments, and i think the franchisers are looking for franchisees that can develop into multiunit franchisees. >> reporter: prime candidates not only for their wallets. >> these athletes have all been used to dealing with a playbook, following, you know, kind of rules and regulations. and i think there's lots of comparables to franchising. >> reporter: while franchises maying an attractive investment for athletes, experts warn that everyone has to do their homework. >> athletes may lead with their checkbooks as opposed to really doing the background research and being prepared to become a franchisee. >> reporter: for cnbc, i'm jackie deangelis.

>> now, one athlete who's carved out a successful pro sports career is the nba's original superman, shaquille o'neal, who's now in business as the soup man. that's an offshoot of, yes, the soup nazi franchise made famous, bill, on "seinfeld." >> and he is also a student analysis on nba on tnt and is betting big on soup as an equity advisor in the original superman franchise. and shaq joins us from, where else, orlando, big guy. good to see you. thank you for joining us again today. >> how are you? >> doing well. you know, i know you have so many possibilities of businesses to invest in, to endorse, and all. why soup man? >> well, i've always tried to be a first mover. i was an early investor in google, i was the first verified account on twitter. it's all about doing things first. you know, soup man, you know, the very innovative -- they have

a new pack coming out, green package, nierks butce, beautifu packaging for the people. and their product is very good. my favorite is the lobster bisque. >> the lobster bisque. >> yes, it's just fabulous. it's all about being a part of something good. >> kelly? >> yeah, no, i'm actually trying to get my hands on one of these boxes, shaq that -- >> don't you have lobster bisk there or something? >> i do. i have the lobster bisque. okay, we're showing some images, as well, that they've brought in of the new boxes. the mugs there. and the lobster bisque here on set, because i understand it's one of the better -- should i give this a try -- ooh, all right. what the heck. >> yes. it's really good. >> shaq wants you to try -- >> shaq, while i'm trying this, why the lobster bisque? >> well, i mean -- >> you're about to find out. >> -- growing up in louisiana, played in boston, lived in

miami, lived in california, i love water. i love seafood. but, you know, this lobster bisque is because i couldn't believe how many chunks of lobster came out of this little package. >> he's counting the chunks. >> yes. there's a lot of lobster in here. >> it is. >> i think we added some to this. i don't think it usually comes with this much lobster. >> no, it actually does, trust me. >> wow. that's -- i've got to say that's pretty good. >> yes. >> a lot of sodium. people are worried about sodium levels these days. >> well, i'm not a sodium-ologist, but i'm a taste-ologist, and it tastes fabulous, i know that. >> i love this. you know, i see you doing car commercials, and every time i see another car commercial with shaq in it, i think, what -- you're such a young guy. you had such an incredible career in the nba. what do you do for a second act? i mean, where do you go from here now, shaq? >> well, you know, again, it's all about being the first mover. superman will be the first national brand to have a food

truck. we've seen food trucks around the country. this is a great thing they're doing. for me, it's about maximizing my potential and just creating good partnerships, you know, just having fun. >> aren't you still going to be a cop in newark, new jersey? >> yes. >> what happened to that? >> no, i'm a detective in florida, but i can't talk about that, because i'm undercover right now. i don't want to blow my cover. >> shaq, i have a feeling people know it's you when they see the -- >> no, they don't. >> how tall are you, eight feet tall? >> 7'1". >> they don't know? >> no, they have no idea. >> i'm curious since you're involved in many business ventures, are you in florida because of the tax advantages, or what other athletes, like phil, who said he's suffering because of high taxes. what's the shaq take? >> well, i mean, it is what it is. you know, we as athletes and entertainers, we get charged -- we get charged tax by playing in states. i remember when they passed that -- i think it was ten years

ago, i had a meeting with my accountant, and i had to pay taxes all over. you know, it's the american way. so if a regular person can pay tax, i can pay tax, also. i don't complain about it. >> you miss the game, don't you? >> no, i do not. >> come on. >> not at all. >> you don't miss the adrenaline rush of being on the floor and getting beat up by the other team? >> no, because i been playing since -- since the age of 13 years old. i was playing a long time. and my body wasn't -- wasn't allowing me to play at a high level anymore. so it was -- it was smart for me to do something else. you know, you guys said -- you guys said something very interesting before, athletes that, you know, turning into investors. >> right. >> i've never looked at myself like that. i've always been a businessman who was athletic. >> hey, shaq, there's actually a debate right now in the ncaa over whether athletes should be able to take advantage of their fame to sell their autographs, for example, and people arguing for it, saying, look, the guys

won't be in sports that long. it could be a huge income stream, a huge opportunity for them. what's your take on that? do you think growing up throughout your career, the way that sports has become more professionalized, people should have the opportunity to take advantage of their own fame and success, even at an early age? >> well, the issue would be, for example, let's take the college lsu, who brings in a lot of money from the football program, and take rollins college, who don't bring in a lot of money. so my take on that is that every athlete should get paid the same thing, maybe $200 a week. every school in america, $200 a week allowance, plus the free food, plus the free books. and then they are getting paid, and then we can eliminate the conversation of whether athletes should get paid. everybody, across the board, gets $200 a week, $800 a month. that's it. >> i mean, you know, part of the issue was this ed o'bannon suit where they felt like they were being taken advantage of by the companies putting their images on videogames and things, and

they weren't being compensated for that. are college athletes being taken advantage of in what has become a huge business, and that would be college athletics? >> well, i mean, i wouldn't say they're being taken advantage of. it's a whole -- it's a whole athletics-economics thing we could always go through, we could always debate. you know, we bring in money. the fans pay money. you know, it's the whole thing that, you know, we could talk about for a long period of time. to eliminate the conversation about whether college athletes should get paid, every athlete in college should get $200 a week, $800 a month. >> i'm a big lakers fan. but kelly, you are -- you are kelly -- >> i played basketball growing up, yeah, back when i was a shrimp, played point guard. i got taller. but it was too late. i never really made it. >> shaq waving at kelly. that's a moment for you, kel. >> i know. thank you so much for joining us, we really appreciate it. >> thank you. >> good to see you.

>> and for sending the soup. >> yes, thank you. >> good stuff. >> there you are. >> from shaq attaq to lefty. that's phil mickelson's nickname, still riding the high of his spectacular british open victory as he plays in the barclays tournament, bill. >> i love how you're moving on, you just med our idol, and you're moving on. >> i'll have a moment later. >> very professional of you. maria had the chance to sit down with phil mickelson. they had the chance to speak about the controversial comments about tax rates but maria started out on how phil's golf game is right now. >> i've been playing really well, maria. it's been a great few months. it's been a great summer. a great winter. a year for me. i've really enjoyed playing golf right now. >> what an amazing year you've had. british open. did you feel it, it coming on, you would take that? >> what was amazing about the win is five weeks prior was one of the hardest losses in the history of my career. losing the u.s. open in a

tournament at merion where i believed i would win, i felt like i had control until the tournament i wanted to win so badly, to go from that low and to come back, have the greatest high of my career, winning the cleric jug, i've struggled with links golf over there, and to come out and play that event and play what i thought was the best round of my career on the last day, it feels amazing. i'm still on a high. >> amazing. do you feel pressure to win next year at pinehurst? you know, what are you feeling now? >> to complete the grand slam would be the greatest accomplishment. >> yeah. >> i think any golfer could achieve, and i'm one leg awayment i'm going to be focusing in on the u.s. open. the challenge for me is to not get overly excited about the open and put too much pressure to where i inhibit my play. because i have to play great to win it. and i'll be focusing in every year for the rest of my career. hopefully, next year i do it, and if not, i'll go to chambers bay and grind it out. >> congratulations. what a fantastic year. now, i know you caught heat on the tax burden, and then

apologized, but the truth is, it is extraordinary, the fact that it's more than 60% of your winnings that you've got to pay to governments. >> you know, it's -- it's an interesting deal that it's tough to talk when, because i don't -- nobody wants to be insensitive. nobody wants to be insensitive. it's a tough time where a lot of people are having a hard time with work. i have a chance to spend time with ceos. a lot of them who are quality individuals having a hard time hiring right now, because of so much uncertainty going on in the financial world with whether it's taxes, whether it's the healthcare, whether it's all of the obligations placed on the employers. i don't want to be insensitive. i understand and get it. but it's not -- it's not making me want to go out and work harder. >> would you actually leave the country? >> oh, no, no, no i -- i love this place. it's the greatest place in the world. see, when i was 8 years old, okay, a lot of people thought i grew up in a country club.

i didn't. i grew up in a family that was lower middle class. and we did fine. i wanted to play golf, and i didn't have the opportunity. i didn't have a club to go practice. you know what i did? i went down to the local municipal course, got a job picking up range balls three nights a week, picked up trash in the parking lot, picked up the pins. for that, i was able to play in practice. so i was able to do what i love, and if i had a strong enough will and desire to achieve it, i was able to fulfill my dreams of playing in the pak tour. i don't know what other country allows those great opportunities. >> yeah, it's really extraordinary. america, it really is. do you think we still have that fire in the belly in younger generations, given these -- some of the issues we talk about? are we still that, you know, ever productive society that we always have been? >> i can talk more specifically for golf than i can universally, but in golf, i see different cultures have a very hard work

ethic at a younger age, and i see these different countries developing young players at a faster rate. and so, i don't know if that's -- why that is, if it's a cultural thing or if it's just the desire or what. i do see some other cultures working harder and ultimately they'll pass us if we don't get after it. >> so you do a lot of corporate stuff, right? you're always working with barclays, among other companies. what are you hearing when you're messing around with business people and getting together at some of the events? we all know business is done a lot on the golf course. what are you hearing from ceos? >> well, i love having the opportunity to talk to some ceos, because first of all, they're brilliant people. they're the best at what they do. i can ask kind of prodding questions. sometimes they can't answer it, because it's a little too proddy. but when they can answer it, i've asked. and it's difficult. we're all going through a tough time. you know, right now, with the financial markets. and they're having a hard time hiring because of the uncertainties of their actual financial obligation to the employees that they would hire.

>> phil mickelson talking with maria bartiromo. nice sunglasses, too, m. imf christine lagarde making news an hour ago on the global economy. >> that's right. coming up, she'll talk about that and explain what exactly her concerns are. don't go anywhere. "closing bell" continues right after this. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ kitt ] you know what's impressive?

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well, as we all know, federal reserve chairman ben bernanke may be missing the central bank's annual monetary conference in jackson hole, wyoming, but other economic luminaries are attending, including christine lagarde, the managing director of the international monetary fund. she's now there with our steve liesman. steve, all yours. >> yeah, bill, i think christine lagarde gets the leading luminary title here with the absence of ben bernanke here. we do have the managing director of the international monetary fund, christine lagarde. thanks for joining us. >> sure, it's a pleasure. >> you gave another interesting speech, like you did two years ago, raising a few eyebrows. you're warning essentially, as i read it, of the spillovers from the exit. >> mm-hmm. >> how concerned are you about that? >> we are quite concerned, because we believe that unconventional monetary policy is very much navigating a new world. and entry has been one thing, exit will be another thing. but certainly what is done in the u.s. by the fed in the u.k.

by the bank of england, in europe by the european central bank and in japan by the central bank of japan is having effects elsewhere in the world, not just at home. and those effects have been, you know, largely positive. there's been a lot of capital inflows. there's been, you know, increase in credit. there's been certainly the markets have recognized the positive aspect of it. but as there is talk of exit, and there is a bit of uncertainty about when it is, how much of it there will be, there is also uncertainty that is translating into emerging market markets. >> we've seen some pretty violent reactions in currencies and in bond markets. >> right. >> and so, the kind of stability you could see -- the instability that you saw on the way in, we could see that on the way out? >> correct. which is why we are clearly advocating here in jackson hole as much coordination as possible between the central bankers of countries that are doing unconventional monetary policies and the central bankers of the

nonunconventional monetary policies. because they are all tied together. >> that's a sort of new thing for the central bankers who are normally doing their monetary policy for domestic reasons, and now you're suggesting -- did they talk to you on the side and say you were crazy? what did they say in. >> they haven't said i was crazy yet. >> yet. but they said you were crazy two years ago when you said european banks should have $2 billion of capital. they didn't like it. >> that's true. they didn't like it at the time. so i'll wait. >> let's talk about global growth right now. where does it feel like we are in the cycle here? the first half has disappointed here in the united states s there hope for a second half, or for 2014, for better numbers? >> first of all, we are on a path to recovery. our estimate for 2013 is slightly in excess of 3%. so 3% is recovery. not enough. there could be more. and it could be better spread around the world. in the u.s., we're concerned about the effect that the fiscal consolidation has and will

continue to have during fiscal year 2013. 2014 is going to be, in our view, better, because that fiscal conservation will have been digested, in a way, and priced in. but certainly the u.s. growth could have been better this year, and will, in our view, be better next year. >> you also did something i thought was weird. you were talking about market intervention. >> mm-hmm. >> and i'm relaxed in the standards -- not standards, but a recommendation, that it's okay to do capital intervention, and to have countries smooth out the capital flows. >> when we say there is massive capital outflows, as there is likely to be in some of the emerging markets, those poli policymakers have a range of tools that they can use. they can use macroprudential actuals, microprudential tools. they can use a degree of market

intervention by where they're using the reserve, if they have a lot of reserve. what we have said, as well, ultimately, they can use some capital flow management. that should be a last resort. >> last resort. i have to ask you one other thing. the local story here in the united states. our nasdaq shut down. does it raise some red flags about potential market instability and need for oversight of some of the markets? >> i think it raises two points. one is that technology matters enormously. and the quality of the platform, the investment in technology matter enormously. second, it says that there has to be coordination, and there has to be coordination on a cross-country basis. you know, sort of central platforms, whether it's in the derivative markets or otherwise, are critical important. some work has been done on the financial sector reform in that regard. but central-clearing platforms need to go, you know, a long way into being smoother, more coordinated, better articulated, and, you know, more transparency, as well.

>> christine, thank you for joining us. hope to see you again here at jackson hole. bill, back to you from jackson hole. i think that's our last broadcast from here. >> good job, steve. enjoy the view there, as well. thanks. >> wow. what a busy day it's been -- a busy week out there, frankly, at jackson hole, bill. >> yeah. i just finished the lobster bisque. >> how was that? >> delicious. >> time for dessert? >> yeah, now we're on to cake. so even steve ballmer loves change as he jumps out of one here at a microsoft meeting. what? we'll be checking out the baking business with the cable tv star, the cake boss, coming up in a couple of minutes. yes, he's here, and that's st e ballmer who jumped out of the cake. >> some call those the ferraris of cakes that the cake boss meets. we have actual ferraris on the program today. we have everything. the cars you're looking at at the new york stock exchange, selling the hundreds of thousands of dollars, and the ceo of ferrari north america joins us, coming up on the "closing bell." ♪ celebrate [ indistinct shouti]

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weeks, it's been on a sell-off. add fuel to the fire, what happened yesterday, combined with light august volume numbers, i think as the dow sits around this 15,000 mark and tries to figure itself out, we'll probably have light volumes all the way up until the fed meeting next month. so earnings picture doesn't look great for stocks in general in terms of those that are companies. you know, having stocks on their exchanges. so now add on that, probably regulatory coming down the pipeline, somehow a way to improve the system here, to make it better, will add costs to probably the nasdaq. it's only an assumption, but i have to assume they'll look and see what can be done to improve that. that means money put into the sis techl. so that ultimately impacts earnings costs here. i would wait for nasdaq to get below $30 a share. looking around the $28 level, that's wed i'd be a buyer. until then, i think some of the exchanges could be under pressure. i'm long cboe stock, but certainly a chance to buy on some sort of dip, but wait here. i think there will be sell-off on some of the names. >> all right. got t we'll see you at 5:00 eastern on cnbc. >> thanks, bill.

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>> so we're cruising the fast lane on "closing bell," ferrari gearing up for another big year. sales rose by 9% first half of this year, delivering over a thousand cars in the first six months. and you have a few of them outside the new york stock exchange. >> here to tell us more and marco, president and ceo. welcome. >> thank you. >> a lot of us have been spending time trying to figure out what's going on with the u.s. consumer. what are you seeing among your buyers? >> there's a higher confidence. customers coming back after 2008, 2009, tough years. and this year we have 9% compared to last year.

it was the best year ever for ferrari. our line is really unique for our segment. >> are those buyers here in the united states? >> in the united states, the geography has change a little bit. largest market is california. second largest market is florida. florida has an unflux of capital from south america. then we market like canada, calgary, canada, vancouver. so it's a different geographic distribution of wealth. >> you're making a hybrid car, but ferrari is about performance. does a hybrid engine affect the brand or reputation of your company? do you worry about that? >> if you're not 120% sure that

the delivery in driving the speed, definitely one of the commitment of ferrari in the last three years has been to cut by almost 40% the emission, definitely we pay attention to technology and these represent utmost integration between street car and the formula 1 department, the kinetic energy recovery system, two three years, so i think it's not affecting the driving experience, but instead is proving that ferrari is pioneering technology. that's our mission. >> you mentioned california as well. i can't help but wonder about tesla, if you think about the buyers for tezula, a lot of them have got to be potential buyers for ferrari. it's a luxury item. are you seeing any impact of that, from people who would otherwise perhaps buy one of your cars? >> not really. the purchasing price of tesla is

$100,000. there is some because tesla has been positioned like a luxury brand. but we deliver a unique driving experience and we do not believe that an lek car today can deliver such opportunities. >> so is an electric ferrari in the future? >> no. >> you'll leave it to tezula? >> at the moment, our road is hybrid technology. >> appealing to consumers already. thank you for joining us. thank you for bringing these cars out here. people are all taking a look. >> love to be here with you guys. >> next up, he's a cable tv sensation who is reportedly making $2 million a year just making cakes. it's the cake boss who joins us live with his latest creation next on "closing bell." i take scottrade's free, in-branch seminars...

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headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. >> finally, our next guest is a fourth generation baker who's turned his family business into an empire. get this, he makes 500 birthday cakes and thousands of cannolis every week and he loves it. plus he's an author, fill an

tlopist and a television star. i'm talking about the cake boss. we were thrilled when we heard you were coming today. thanks for being with us. >> thanks for having me. >> what were you making there? >> we're trying to get away from the old clunky cash registers, trying to get people on more of a newer pos, cloud based and easy to work with. >> so this is literally, death to the cash register. so what's is this initiative is what state do you have with pay pal? >> i use pay pal on my bakeries. i just feel that it offers such an easy solution for small businesses like myself to be able to grow. it's giving you cutting edge technology. they're running a program right now, if you sign up for pay pal -- >> you get a cup cake? >> that's a good one. i'll make a note of that. but what they're doing, if you

get a cash register, they'll tailor the software for your business and give you free transactions from now until the new year. >> i can smell the sugar. what is your net worth, roughly? you've been so successful? >> wow, she's going there. >> i'm just curious. >> i don't want my wife to know. >> you're just mega successful. i'm just curious. >> i don't know. i'm working on it. >> do you really make a thousand cannolis every week? >> we definitely make probably even more than that. >> i'm asking you if you make it. >> me personally? no, but i can. if i was going to work a week straight, i could make 10,000 cannolis. >> do you get requests from wall street for cakes? >> we definitely do. corporate clients, whoever wants a cake, if you can dream it, i can make it. >> it's always good to see you. thank you. we appreciate it. and the cake is a delight. it's a masterpiece as always.

we wouldn't expect anything less from the cake boss. >> appreciate it. >> i can smell the sugar coming off it. i think there are a lot of people who might enjoy a taste of that. >> thanks for joining us. "fast money" is up next. see you monday. >> some friday music for you, live from the nasdaq market side in new york's times square, i'm sitting in for melissa lee. and our traders tonight are guy ada adami, let's get straight to the big story today. microsoft ceo announcing he will step down within 12 months. stock also adding $19.7 billion on the back of that news. the question that we ask